Brussels, 23/10/2003 (Agence Europe) - The Italian Presidency presented a proposed compromise for products and services that can benefit from reduced rates of VAT. Permanent representatives from Member States were discussing the issue on Wednesday in the hope of making progress towards an agreement during the next Ecofin Council meeting on 4 November. According to Community sources, the compromise is encountering strong opposition from Germany, Sweden and Denmark. They oppose any extension of the list, even within the limits proposed by the European Commission last July.
Italy proposed adding the following to the Commission list: records (requested by France but opposed by Nordic countries), the restoration of historic monuments (British demand) and children's clothing and footwear (United Kingdom, Ireland and Luxembourg). It rejected British requests for renewable energies and motorbike helmets, from Greece. The compromise wanted the Commission to make a commitment to revising the list of possible derogations before the end of 2006, the date on which the transition periods granted to accession countries.
Record producers and artists, members of the "Give Music a Break" coalition welcomed the Italian proposal to include records in the list of products benefiting from a reduction. In a press statement they called on Member States to follow this road, giving assurances that the European Parliament also supported this measure.